By Admin 
Snapchat Layoff: Snap’s shares have seen a rise on Wednesday, meanwhile the company has also decided to reduce its staff. There are reports that the company is going to lay off some people from its staff soon. These jobs are being lost because of AI. The company has also recently announced layoff of 16 percent of its employees.
Company CEO wrote letter
In fact, on Wednesday, a jump of about 7% was seen in the shares of Snap Company. Citing AI-driven efficiency, the company has planned to cut up to 16% of its employees globally. CEO Evan Spiegel said in a letter to employees that the cuts would affect approximately 1,000 employees and at least 300 vacant positions would also be closed.
AI becomes enemy for employees
In a letter to his employees, Spiegel said, ‘Last time I mentioned that Snap is going through a decisive phase, which requires a new, faster and more efficient way of working, as well as moving towards profitable growth. We believe that rapid advances in artificial intelligence are enabling our teams to reduce repetitive tasks, increase speed, and better support our community, partners and advertisers.
He further wrote, ‘We have already seen small teams using AI tools to make meaningful progress on a number of important initiatives, including Snapchat+, improved performance of the advertising platform, and efficiency improvements in our Snap Lite infrastructure.’
Employees will get four months salary
The company says that these decisions are difficult for them too, but considering the future, this decision is also necessary. The company has also said that the company is fully in support of the employees who are being laid off. Employees will be given four months salary, health insurance, equity vesting and career transition support. Spiegel said the layoffs would reduce the company’s annual costs by more than $500 million by the second half of 2026. Snap estimates revenue of $1.5 billion for the first quarter, an increase of 12% year-over-year.